For many years the majority of mainstream lenders such as high street banks and building societies have had a cap on the amount they were prepared to lend as a mortgage. This was (and still is for many lenders) set at 500,000 although some have recently increased it to 1 million. But if you compare this with the cost of a family home, particularly in London then it is often not enough for high net worth borrowers. Borrowers looking for larger than average sums have, therefore, traditionally looked to alternative lending sources such as private banks. Since the credit crunch, obtaining a large mortgage from a traditional bank or building society has been even tougher.
But the situation could be changing as many of the UK's leading lendersare now more willing toenter into the large mortgage market and are offering competitive rates compared to private banks; although with far less flexibility which means that it is still harder to obtain a large loan from a mainstream lender. Anyone looking for a 1 million plus home loan can still benefit from a specialist intermediary who can look at all the alternatives available to a borrower.
Some of the lenders who have been seem to be willing to lend 1 million or more include theSkipton Building Society, Woolwich, Accord, Clydesdale Bank, Metro Bank, Nationwide, Santander and Halifax although securing this level of loan from any of these lenders is unlikely to be simply a matter of strolling into your local branch
The verifiable income required to obtain such a large mortgage varies noticeablybetweenlending institutionssoeven though more banks and building societies are prepared to lendto the high value mortgage customer, expert advice will help match up the right lender with a particular borrower.
For instance, the level of earnings required to secure a 2 million home loan can vary by as much as 25 per cent depending on which lender you approach. It will alos, of course, depend on whether you are borrowing in joint names, what the age of the borrowers is, whether you have dependents and whether you have any other debts.
Over recent years, private bank mortgages had become more and more desirable to high net worth clients as the traditional lenders had backed out of the large mortgage market. These private banks have arranged high value mortgages at very competitive rates especially for borrowers withother assets that they are prepared to move under the management of the new lender; although even this requirement is imposed less often than it used to be.
Private banks continue to be a good option for many borrowers seeking larger than average mortgages and whilst their arrangement fees may be larger than some of the mainstreamlenders, they do have some very good deals and much more flexibility and underwriting expertise to look at various income streams when assessing affordability.
Private banks are still a very good choice for clients seeking a large mortgage but who have complicated income arrangements such as overseas income or income from a trust. They can also arrange high net worth mortgages in a way which suits those who might not necessarily have a regular monthly income and the overall deal will often work out better for such customers than simply the lowest interest rate.
But the situation could be changing as many of the UK's leading lendersare now more willing toenter into the large mortgage market and are offering competitive rates compared to private banks; although with far less flexibility which means that it is still harder to obtain a large loan from a mainstream lender. Anyone looking for a 1 million plus home loan can still benefit from a specialist intermediary who can look at all the alternatives available to a borrower.
Some of the lenders who have been seem to be willing to lend 1 million or more include theSkipton Building Society, Woolwich, Accord, Clydesdale Bank, Metro Bank, Nationwide, Santander and Halifax although securing this level of loan from any of these lenders is unlikely to be simply a matter of strolling into your local branch
The verifiable income required to obtain such a large mortgage varies noticeablybetweenlending institutionssoeven though more banks and building societies are prepared to lendto the high value mortgage customer, expert advice will help match up the right lender with a particular borrower.
For instance, the level of earnings required to secure a 2 million home loan can vary by as much as 25 per cent depending on which lender you approach. It will alos, of course, depend on whether you are borrowing in joint names, what the age of the borrowers is, whether you have dependents and whether you have any other debts.
Over recent years, private bank mortgages had become more and more desirable to high net worth clients as the traditional lenders had backed out of the large mortgage market. These private banks have arranged high value mortgages at very competitive rates especially for borrowers withother assets that they are prepared to move under the management of the new lender; although even this requirement is imposed less often than it used to be.
Private banks continue to be a good option for many borrowers seeking larger than average mortgages and whilst their arrangement fees may be larger than some of the mainstreamlenders, they do have some very good deals and much more flexibility and underwriting expertise to look at various income streams when assessing affordability.
Private banks are still a very good choice for clients seeking a large mortgage but who have complicated income arrangements such as overseas income or income from a trust. They can also arrange high net worth mortgages in a way which suits those who might not necessarily have a regular monthly income and the overall deal will often work out better for such customers than simply the lowest interest rate.